Implied Volatility Mover
Implied volatility in the options on Herbalife (HLF) is easing, as the stock continues its recent rebound. The stock fell sharply last week and fell to new 52-week lows Monday on news Pershing Square’s Bill Ackman was short the stock. Ackman explained his bearish view on HLF Thursday and, among other things, said he believes the company is a “pyramid scheme”. HLF is up $1.70 today, however, and has rallied 15.1 percent over the past three days. Options on the stock are busy. 21,000 calls and 12,000 puts so far. Meanwhile, 30-day implied volatility in HLF is down 9 percent, but still elevated at 103.
Volume Signals
Market Vectors Junior Gold Miners Fund (GDXJ) options volume is running 2.5X the (22-day) average, with 19,000 contracts traded and call volume accounting for 98 percent of the volume.
SPDR Technology Fund (XLK) options volume is 2X, the average daily, with 33,000 contracts traded and call volume representing 98 percent of the activity.
Expeditors International (EXPD) options volume is running 4X the average daily, with 3,400 contracts traded and call volume accounting for 95 percent of the activity.
Increasing options activity is also being seen in Harmony Gold (HMY), Family Dollar (FDO), and MagicJack (CALL).
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